DA has practical requests for state of the nation address
Party wants Ramaphosa to focus on promoting economic growth, boosting investor confidence
27 January 2025 - 05:00
by Hajra Omarjee
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DA leader John Steenhuisen. Picture: FREDDY MAVUNDA/BUSINESS DAY
The DA has not made any lofty demands ahead of the President Cyril Ramaphosa’s state of the nation address (Sona) on February 6, and its leader John Steenhuisen is expected to call on Ramaphosa only to do what is most practical to inspire investor confidence and get SA working.
After several days of engagement and input from the leadership of the second-biggest party in the government of national unity (GNU) , Steenhuisen is expected to demand at this week’s cabinet lekgotla on January 29-30 that the government do what has already been promised by the GNU.
This includes securing concessions for Cape Town and Richards Bay ports.
“These reforms are crucial for improving efficiency and attracting investment,” Steenhuisen said in an interview with Business Day.
Also the DA wants to be hearing soon “a clear plan and timelines” for the concession of the freight rail management system and open-access rail to stimulate competition and operational efficiency.
Steenhuisen seems adamant that confronting the logistics crisis will reduce transport costs and thus the price of food but also allow the country to export far more, which will provide a big boost for economic growth.
The party said this could be done while committing to debt reduction and fiscal discipline.
“A firm commitment [is needed] to reduce government debt, with a long-term goal of achieving a debt-GDP ratio of 60-70% by 2030 in line with emerging market norms,” said Steenhuisen.
The government’s medium-term development plan, which set out the priorities for the next five years, is expected to be finalised at the cabinet lekgotla which will give the National Treasury a clear idea of how it needs to reallocate spending ahead of finance minister Enoch Godongwana’s budget speech on February 19.
Steenhuisen said the focus of Ramaphosa’s speech should be on reducing red tape for economic growth.
“This includes exemptions for small, nonmetro firms from collective bargaining agreements and ensuring streamlined regulatory processes for Starlink licensing to reduce data costs, especially in rural areas, and a review of policies that require 100% local content for certain goods and industries (for example, processed vegetables, furniture, solar components) to reduce costs and encourage innovation. Eliminate export duties, such as those on uncut diamonds and scrap metal, which hinder economic efficiency,” he said.
Steenhuisen also called for a reform of education and health spending to improve the quality of education, supported calls for more infrastructure spending to jump start the economy, specific measures to reduce violent crime and a focus on improving service delivery in local government, in particular the reliable provision of clean drinking water.
The ANC national executive committee held an extended meeting at the weekend to discuss the way forward in the GNU and its policy proposals before Sona. The party went into the meeting seemingly hell-bent on the implementation of National Health Insurance (NHI) Act.
However, Steenhuisen will argue at the cabinet lekgotla that this is not a good idea in the short term.
“(We must) avoid entangling government resources in the NHI act, which will burden the budget further,” said Steenhuisen.
At the weekend the DA declared itself in dispute with the GNU, accusing it of failing to consult its coalition partners on health and expropriation legislation.
The Financial Mail reported last week that most of these issues had not been raised in the GNU clearing house, led by deputy president Paul Mashatile.
Ramaphosa signed into law the expropriation legislation last week.
Organised business, some political parties and civil society organisations have threatened court challenges to the expropriation and NHI acts after months of reportedly trying and failing to engage Ramaphosa on their concern about both.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
DA has practical requests for state of the nation address
Party wants Ramaphosa to focus on promoting economic growth, boosting investor confidence
The DA has not made any lofty demands ahead of the President Cyril Ramaphosa’s state of the nation address (Sona) on February 6, and its leader John Steenhuisen is expected to call on Ramaphosa only to do what is most practical to inspire investor confidence and get SA working.
After several days of engagement and input from the leadership of the second-biggest party in the government of national unity (GNU) , Steenhuisen is expected to demand at this week’s cabinet lekgotla on January 29-30 that the government do what has already been promised by the GNU.
This includes securing concessions for Cape Town and Richards Bay ports.
“These reforms are crucial for improving efficiency and attracting investment,” Steenhuisen said in an interview with Business Day.
Also the DA wants to be hearing soon “a clear plan and timelines” for the concession of the freight rail management system and open-access rail to stimulate competition and operational efficiency.
Steenhuisen seems adamant that confronting the logistics crisis will reduce transport costs and thus the price of food but also allow the country to export far more, which will provide a big boost for economic growth.
The party said this could be done while committing to debt reduction and fiscal discipline.
“A firm commitment [is needed] to reduce government debt, with a long-term goal of achieving a debt-GDP ratio of 60-70% by 2030 in line with emerging market norms,” said Steenhuisen.
The government’s medium-term development plan, which set out the priorities for the next five years, is expected to be finalised at the cabinet lekgotla which will give the National Treasury a clear idea of how it needs to reallocate spending ahead of finance minister Enoch Godongwana’s budget speech on February 19.
Steenhuisen said the focus of Ramaphosa’s speech should be on reducing red tape for economic growth.
“This includes exemptions for small, nonmetro firms from collective bargaining agreements and ensuring streamlined regulatory processes for Starlink licensing to reduce data costs, especially in rural areas, and a review of policies that require 100% local content for certain goods and industries (for example, processed vegetables, furniture, solar components) to reduce costs and encourage innovation. Eliminate export duties, such as those on uncut diamonds and scrap metal, which hinder economic efficiency,” he said.
Steenhuisen also called for a reform of education and health spending to improve the quality of education, supported calls for more infrastructure spending to jump start the economy, specific measures to reduce violent crime and a focus on improving service delivery in local government, in particular the reliable provision of clean drinking water.
The ANC national executive committee held an extended meeting at the weekend to discuss the way forward in the GNU and its policy proposals before Sona. The party went into the meeting seemingly hell-bent on the implementation of National Health Insurance (NHI) Act.
However, Steenhuisen will argue at the cabinet lekgotla that this is not a good idea in the short term.
“(We must) avoid entangling government resources in the NHI act, which will burden the budget further,” said Steenhuisen.
At the weekend the DA declared itself in dispute with the GNU, accusing it of failing to consult its coalition partners on health and expropriation legislation.
The Financial Mail reported last week that most of these issues had not been raised in the GNU clearing house, led by deputy president Paul Mashatile.
Ramaphosa signed into law the expropriation legislation last week.
Organised business, some political parties and civil society organisations have threatened court challenges to the expropriation and NHI acts after months of reportedly trying and failing to engage Ramaphosa on their concern about both.
omarjeeh@businesslive.co.za
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